The World Bank has announced pausing the approval for new public finance projects in Uganda over the bill criminalizing same-sex conduct.

“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values,” World Bank said Tuesday.

Further, the lender added that “no new public financing,” would be presented to the bank’s board of directors for approval for the time being.

The action was taken in response to demands from human rights organisations and US Congressmen to take a more aggressive stance against Kampala about the law, among the toughest of its kind in the world.

The Anti-Homosexuality Act of 2023 in Uganda has clauses that make "aggravated homosexuality" a capital offence and that can result in life in prison for consensual same-sex relationships.

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“Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance,” the World Bank said.

Additionally, it noted that it discussed the issue with the Ugandan authorities.

At the end of July, several members of the US Congress called on World Bank President Ajay Banga to “immediately postpone and suspend all current and future lending to Uganda” until the law was struck down.

Following the bill's passage, the US State Department updated its travel advisory, telling citizens to “reconsider travel to Uganda due to crime, terrorism, and anti-LGBTQI+ legislation.”